India Corporate Bonds: FY26 Mobilization Drops 8.4%
By Market Desk
India’s corporate bond market saw an 8.4% decline in FY26, raising Rs 9.1 lakh crore. This is the first contraction since FY22, despite a rise in issuances.
Fund mobilization through the Indian corporate bond market saw an 8.4% decline in fiscal year 2026, falling to Rs 9.1 lakh crore. This marks the first contraction observed in the market since FY22, according to the annual report from the Securities and Exchange Board of India (Sebi).
Despite this overall decrease in fundraising, the market demonstrated sustained issuer participation. The number of corporate bond issuances rose to 1,967 during FY26, indicating continued activity.
Market Segments and Activity
The market structure remains heavily reliant on private placements, which constituted 98.8% of the total funds mobilized. This highlights the preference for direct placements over public offerings.
- Resource mobilization via public issuances saw a significant increase of 39.2%.
- Public issuances reached Rs 11,343 crore in FY26.
- Out of 43 public issues, 40 originated from the financial sector.
Secondary market activity also showed considerable strength throughout the fiscal year. The value of corporate bond trades settled through clearing corporations ICCL and NCL increased substantially.
- Secondary market trades grew by 27.9%.
- Total traded value reached Rs 21.2 lakh crore in FY26.
- Listed corporate bonds maintained dominance, accounting for 89.5% of the traded value.
Mutual funds solidified their position as the largest participants within the secondary market. Their share in turnover expanded significantly, while other key players saw their involvement decrease.
- Mutual funds’ share in turnover grew to 32.1%.
- Market shares of banks and corporates experienced a decline.
Expanding Beyond Corporate Bonds
Beyond traditional corporate bonds, other segments of the debt market also recorded notable activity. Municipal bonds, a crucial avenue for civic bodies, saw a substantial increase in fundraising.
- Civic bodies raised Rs 1,756 crore in FY26 through 14 issuances.
- This is a significant jump from Rs 100 crore raised in FY25.
- This increased traction for municipal bonds was attributed to Sebi’s targeted outreach programs.
The value of Commercial Papers (CPs) listed on exchanges additionally saw an increase. This indicates broader growth across various short-term debt instruments.
- Listed CPs increased by 7.8%.
- The total value reached Rs 16,68,834 crore in 2025-26.